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Pastoralists divided on gas industry, as NT government clears fracking in Beetaloo Basin

Mike Harding fears the long-term impacts of fracking in the Beetaloo Basin. (ABC Rural: Max Rowley)

Tom Stockwell has watched for years as roads and other infrastructure in regional parts of the Northern Territory have gone backwards. 

"The money that's gone into roads and telecommunications, and any sort of public infrastructure, has just been declining," Mr Stockwell said.

But the pastoralist, who lives at Sunday Creek Station, 600 kilometres south-east of Darwin, said an emerging gas industry could hold the answer to the region's economic woes.

"The whole pastoral enterprise relies on being able to get big, heavy road trains in, with supplements and inputs, and out with cattle that earn export dollars," he said.

"Roads are an absolutely critical piece of infrastructure.

"[And better roads] could be a significant spin-off from the gas industry being developed."

Bev and Tom Stockwell grow hay to feed their cattle at Sunday Creek Station. (ABC Rural: Max Rowley)

The NT government gave the green light for full-scale gas production in the Beetaloo Basin earlier this month, claiming it had completed all 135 recommendations of the Pepper Inquiry as promised.

That claim has since been disputed by the government's own independent overseer for implementing the inquiry's recommendations, which were aimed at mitigating the risks associated with fracking.

Lingiari MP Marion Scrymgour this week called for an urgent pause to production approvals, labelling the NT government's claim as "inaccurate".

Groundwater concerns

More than 30 pastoral leases are covered by exploration permits from three gas companies across the 28,000-square-kilometre basin.

Carina James also has a small herd of goats at the cattle station. (ABC Rural: Max Rowley)

To the north of Sunday Creek, Carina James at Cow Creek Station said the potential risks to groundwater from fracking far outweighed any benefits to the region.

"There's no permanent water above ground here, so I am 100-per-cent reliant on underground water," she said.

"I've got thousands of head of cattle and they're reliant on that."

She said if given a "choice between a road and my water, I'd take water quality … and quantity every time."

"Unless somebody can give me a 100-per-cent assurance that we are not going to have anything affect our water, which is the core pillar and foundation of our business, then I'm always going to choose the water."

Tamboran's Amungee 2H exploration well is in the Beetaloo Basin. (Supplied: Tamboran Resources)

In one scenario laid out in the Pepper Inquiry's final report, about 2,500 to 5,000 megalitres of water could be needed per year for drilling and fracking wells in the Beetaloo Basin.

NT Environment Minister Lauren Moss said water licences for the gas industry were "assessed against a number of criteria including availability of water and ensuring environmental and other water users are not impacted".

But Ms James said she was concerned about recent changes to water allocation in the region, which some environment groups have said amounted to "aquifer mining".

Carina James says she is concerned about the allocation of water licences. (ABC Rural: Max Rowley)

She said she was worried the government would "start moving the goalposts" to allow further water licences.

Long-term impacts questioned

Mike Harding, at nearby Gorrie Station, said he also feared contamination of freshwater aquifers from fracking.

"The contaminants involved in the use of that water and what is to be done with the contaminants afterwards, that's more concerning than the amount of water utilised by the fracking," he said.

Mike Harding says he is worried about what future generations will inherit. (ABC Rural: Max Rowley)

"If extremely saline aquifers were allowed to mingle with our useful aquifers that we tap into for our industry, or the aquifers that feed our pristine waterways, I can see some really big downsides.

"That's where the danger to me lies … our aquifers and our waterways. They're irreplaceable."

Shale gas fracking involves drilling wells several thousand metres vertically, then in a further horizontal section, a mixture of sand, chemicals and water is pushed down the well at high pressure to crack the rock, releasing the gas.

The gas industry says fracking wells are sleeved with steel and a layer of concrete to prevent water contamination. (ABC News: Hamish Harty)

The NT government has enacted recommendations from the Pepper Inquiry into fracking, requiring gas companies to meet "minimum requirements … to ensure the integrity of onshore shale gas wells in the NT".

But Mr Harding said he was sceptical about the long-term integrity of fracking wells and the materials used to protect cross-contamination of aquifers.

"It's hard to think of any endeavour that hasn't had some hiccups, and I don't believe we can afford hiccups when we're dealing with our water resources for the future," he said.

"I think we need to look down the track a little bit further and not accept the short-term gain."

Managing risks

Australian Petroleum Production and Exploration Association NT director David Slama acknowledged "there is always risk", but said "the likelihood of things going wrong are so small".

"We as an industry are particularly concerned that water is preserved, and its quality and integrity is maintained," Mr Slama said.

"Our members are maintaining that integrity, following strict procedures, testing aquifers as we're drilling just to make sure that if anything were to go wrong, we're able to pick it up quickly and rectify it.

"There is no industry that has more stringent risk management protocols to adhere to — and they will be adhered to."

David Slama says the gas industry will adopt "world's best practice". (Supplied: Business SA)

Pastoralists have no right to veto a gas development on their land.

Two cattle producers have taken a gas company to court after failing to reach an agreement on their access agreements, with the court ruling in favour of the gas company.

Mr Stockwell said it was important for gas companies to be "respectful when they're knocking on the door".

"[But] if there's lots of wealth sitting underneath the ground in oil and gas, that belongs to the people of Australia," he said.  

"And if they want to get it out and make money and use it to keep warm and keep our transport systems going, I think it's their right to have it."

Tom Stockwell says the risks from fracking are miniscule compared to other risks pastoralists face. (ABC Rural: Max Rowley)

Mr Stockwell said he believed the risks to the pastoral industry could be managed with strong regulatory oversight and enforcement.

"I think the consultation through the Pepper Inquiry and development of the regulations was technically solid, but the enforcement of the regulatory framework is critical and non-negotiable," he said.

But for some of his neighbours — and friends — they have agreed to disagree.

"I've always said that politics, colour, or religion are no basis for forming or keeping friendships. They're not a good determinant of what makes a mate or a friend," he said.

"We might have to add fracking to that [list] too."

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